Investor pays £10.3m for town centre retail properties

MIDLANDS property investor Custodian REIT has bought a block of properties in Shrewsbury for £10.3m.
The six retail properties and two restaurants make up a “very prominent” block in the town centre and generate a passing rent of £667,000 per year.
The tenants include Thomas Cook, Paperchase, Holland & Barrett, and ASK restaurant.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “The town benefits from a large and affluent catchment population and is a strong draw for local and tourist visitors alike.
“The town centre enjoys a very high occupancy rate, many leading national multiple retailers and a thriving independent retailer mix, demonstrating its strength and vitality as a retail destination.”
The purchase was funded from the company’s existing debt facilities.
There is a weighted average unexpired lease term of six years, with one lease having 21 years left to run. The current passing rent reflects a net initial yield of 6.07%.

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